Telecom services forecast to grow at 1.3% to $1,417 bn in 2019

January 28, 2019

The global communications services market is forecast to grow at 1.3 percent to $1,417 billion in 2019 and 1.5 percent to $1,439 billion in 2020 as compared with 1.9 percent growth in 2018 to $1,399 billion, according to Gartner.
John-David Lovelock, research vice president at Gartner, said: “Spending is moving from saturated segments such as mobile phones, PCs and on-premises data center infrastructure to cloud services and Internet of Things (IoT) devices.”

The total IT spending is forecast to grow at 3.2 percent to $3.76 trillion in 2019 and 2.8 percent to $3,875 billion in 2020.

Communications services market is the single largest segment of the IT spending.

Data center systems market will grow at 4.2 percent in 2019 to $210 billion and 3.9 percent drop in 2020 to $202 as compared with 11.3 percent increase to $202 billion.

Enterprise software market will grow at 8.5 percent to $431 billion in 2019 and 8.2 percent to $466 billion in 2020 as against 9.3 percent growth to $397 billion.

The IT services markets will grow at 4.7 percent to $1,030 billion in 2019 and 4.8 percent to $1,439 billion in 2020 as compared with 5.6 percent to $983 billion in 2018.

The devices market – laptops, phones, etc – will grow at 1.6 percent to $679 billion in 2019 and 1.4 percent increase to $689 billion in 2020 against 0.5 percent increase to $669 billion in 2018.

Despite a slowdown in the mobile phone market, the devices segment is expected to grow 1.6 percent in 2019. The largest and most highly saturated smartphone markets, such as China, Unites States and Western Europe, are driven by replacement cycles.